Nokia Reports Increasing Sales of Lumia Phones

The Finnish smartphone maker didn't lose as much money in the first quarter as it did a year ago.

While it still reported a net loss for the first quarter of 2013, Nokia's financials showed some signs of improvement. The company has narrowed its losses, and it has increased its sales of the Windows Phone-based Lumia smartphones.

The Wall Street Journal's Juhana Rossi and Gustav Sandstrom reported, "Nokia Corp. posted a narrowed first-quarter loss due to cost cuts and an improved performance from its networks business, but rising competition at the low end of the cellphone market put pressure on shipments of the company's basic devices and led to a sharp decline in revenue. The Finnish company on Thursday reported healthy demand for its closely watched Lumia smartphone lineup, which operates on Microsoft Corp.'s Windows software, representing an important step for Chief Executive Stephen Elop. Nokia shipped 5.6 million Lumias in the quarter. But a decline in demand for Nokia's basic phones, such as its Asha lineup, undermines Mr. Elop's attempt to compete with low-end products aimed primarily at emerging markets."

BBC News added, "Shares of Nokia have fallen 13% after higher sales of its Lumia smartphones failed to offset a decline in its mobile phone unit in the first quarter. In its earnings report, the Finnish firm said sales of Lumia handsets rose 27% in the first quarter of 2013, but that total sales of mobile phones fell 30% to 1.59bn euros. Revenue fell 20% to 5.85bn euros, down from 7.35bn euros a year earlier."

Computerworld's Mikael Ricknas noted, "Nokia sold a total of 61.9 million mobile phones during the first quarter, of which 6.1 million were smartphones (including 5.6 million Lumia devices). A year earlier, it sold 82.7 million phones, of which 11.9 million smartphones, and more than 2 million of those were Lumia devices."

ZDNet's Zack Whittaker quoted Nokia CEO Stephen Elop, who said, "We have areas where we are making progress, and areas where we are further increasing the focus. For example, people are responding positively to the Lumia portfolio, and our volumes are increasing quarter-over-quarter."

Tags: smartphone, Windows Phone, Nokia, quarterly financials, lumia

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